Gold Consolidates as It Awaits US Fed Decision

Source: Mineweb.com (12/10/07)

"When the payroll is better, they may not cut so aggressively. However any rate cut will be good for the precious market. It will add excess liquidity," according to William Kwan, a dealer at Phillip Futures in Singapore.

Gold bounced on bargain hunting on Monday after a drop of around 1 percent last week, but the metal was likely to trade in a tight range ahead of a decision by the U.S. Federal Reserve on interest rates. Spot gold rose to $798.50/799.30 an ounce from $794.90/795.70 late in New York on Friday, when it fell more than $8 an ounce on the back of weaker crude oil...

"Gold is consolidating within the range of $785 to $805. Market participants are just waiting for the rate rate cut announcement before taking any actions," said William Kwan, a dealer at Phillip Futures in Singapore.

"When the payroll is better, they may not cut so aggressively. However any rate cut will be good for the precious market. It will add excess liquidity," he said.